Broadcasting Electric: upstart in transmission and distribution equipment manufacturing industry

New stocks Perspective Broadcast and Television Electric: Transmission and distribution equipment manufacturing upstart reporter Yu Xin as a well-known electrical equipment supplier in China, Shanghai Radio and Television Electric (Group) Co., Ltd. (hereinafter: SVA Electric; code: 601616) is about to log on the mainboard market . The company is mainly engaged in the production and sales of high and low voltage transmission and distribution equipment, various types of components and spare parts, and has achieved remarkable results in recent years. The data show that the net profit attributable to the parent company of SVA in 2007, 2008, and 09 were respectively 8.86553 million yuan, 116 million yuan, and 214 million yuan, of which the weighted average return on net assets in 2009 was 45.86%. The company is in Explosive growth phase.

SVA Electric intends to invest 5 new projects through capital market capital raising to further expand its production capacity and increase its core competitiveness.

Industry Development Trends Xiang Electronics Co., Ltd.'s industry is the transmission, distribution and control equipment manufacturing industry for the power equipment industry, and it is a key area of ​​national policy support. The State Council issued a document stating that “very large-scale power transmission and distribution and grid security assurance” are the key topics for future development in the energy sector, and the National Development and Reform Commission also emphasized “using advanced power transmission and distribution technologies and equipment to phase out old equipment with high energy consumption”.

It has created a good policy environment for the development of the industry.

China's macro economy has also had a significant driving effect on the development of the industry. The power equipment industry has maintained a compound growth rate of around 16% in recent years. With the start of the 4 trillion yuan investment project, coupled with the realization of the plan of “transmission of power transmission and transformation of West-to-East Electricity Transmission Channel V, cross-regional power transmission” and “strong smart grid”, the development momentum of the power transmission and distribution equipment industry will be Unstoppable.

From the market demand, the market demand for power equipment industry will continue to be strong. According to the National Development and Reform Commission data, it can be predicted that by 2020, China's annual average installed capacity will exceed 70 million kilowatts, which provides a rare opportunity for development in the transmission and distribution industry.

The main business is very prominent The main business of SVA has been very mature, divided into two major categories: independent brand business and agency brand business. The independent brand business is a complete set of equipment and components that the company independently manufactures and sells its own brands, including SGEG, A3nAEG and other brands; the agency brand business is mainly CE brand products. It is worth mentioning that the scale of the company's own brand business has expanded rapidly, and its proportion of main business revenue in 2007-09 was 36.75°/, 5.22°/ and 48.89% compound growth rate reached 30.28%. The company's main business growth is stable. According to statistics, the main business revenue of the company for the past three years accounted for 97.22%, 94.92%, and 97.31% of the total operating revenue. Currently, the company's products consist of two major types of 45 model series, basically covering the primary and secondary systems of transmission and distribution. The main complete sets of equipment and components, as well as associated intelligent terminal equipment.

The products have been honored as Shanghai Famous Brand Products, Shanghai Famous Brands, China Famous Brand Products, etc.

The complete equipment business is highlighted by experts in the industry. In the power transmission and distribution equipment manufacturing industry, the profit concentration of the complete equipment market is relatively high. The large-scale equipment manufacturing enterprises have outstanding advantages in terms of technology and scale, and their profitability is on the rise.

Judging from the financial data, among the main business revenue of SVA, the largest proportion of complete sets of equipment. In the self-owned brand business income, the complete equipment revenue is the main source. In 2007-09, the proportion of its own brand business income was 91.57%, 87.46% 89.21% compound growth rate reached 28.59%. In the agency brand business income, the same It is the largest contribution from the revenue of the complete equipment business. The proportion of shares in the past three years will increase with the continuous increase in market concentration and the production of fund-raising projects. The complete equipment business will continue to be the company's profit star.

Leading technology to attract quality customers Guangdian Electric is a high-tech enterprise in Shanghai and has been recognized by the Ministry of Science and Technology as “the backbone enterprise of the National Torch Program Transmission and Distribution Base”. The company set up a technology research center, independent innovation in technology to maintain the leading advantages of the industry, condensing high-quality customers.

The company provided products and services for hundreds of large-scale projects such as the second phase of the Qinshan Nuclear Power Plant, the US Embassy in China, the Bohai Oil Platform, the Beijing Olympic Games competition venues, Beijing, Shanghai, Guangzhou, and other urban rail projects, and also provided services to the top five power companies in China. Distribution equipment, products are exported to India, Vietnam, Indonesia and other overseas markets.

The company plans to raise funds to build an annual output of 25,000 sets of high and low voltage switchgear and circuit breaker production line construction projects, a new harmonic high-voltage inverter high-tech industrialization projects, power intelligent system integration projects, high-efficiency low-loss amorphous alloy transformers Production line construction projects and technology center expansion projects. Market analysts analyzed that after the completion of the project, the company’s technology research and development capabilities and product market share will be significantly improved, in particular, the influence of independent brands will be further expanded.

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